Trafigura’s Ghana Power Generation Company (GPGC) has officially informed the Ghanaian government of its intention to enforce a $134 million judgement debt through asset seizure.
This action comes after the government’s repeated failure to meet its financial obligations stemming from a terminated power purchase agreement.
In a letter addressed to Finance Minister Dr. Mohammed Amin Adam, Trafigura outlined the steps it has taken to enforce the arbitration ruling in its favour. The letter, dated September 23, 2024, reveals that Trafigura has filed the necessary legal papers to begin enforcement proceedings in South Africa.
Patrick Burke, the Director of GPGC, stated, “We can confirm that we have today filed the relevant papers to commence enforcement of the arbitral award in South Africa.”
In addition to legal actions against the Ghanaian government, Trafigura plans to subpoena 16 banks with ties to the government, as well as U.S.-based corporations associated with Ghana. The company expressed frustration over the lack of response to its previous communications and emphasized the urgency of settling the outstanding debt.
This dispute originated from a ruling made by a UK tribunal on January 26, 2021, which found that Ghana had breached its contractual obligations by unilaterally terminating the power purchase agreement with GPGC in February 2018.
The tribunal mandated the Ghanaian government to pay a total of $134,348,661, which includes principal, interest, and arbitration costs. So far, the government has only made partial payments, settling $23 million of the debt after Trafigura temporarily seized Ghana’s Regina House in London earlier this year.
GPGC has reiterated its preference for an amicable resolution, urging the Ghanaian authorities to execute the settlement agreement and make full payment promptly. Failure to act could result in Trafigura taking more drastic enforcement measures against Ghana’s assets both in South Africa and potentially beyond.
